US Code

Public Law 119-73 (01/23/2026)

5 U.S.C. § 5517

Withholding State income taxes

(a)
When a State statute—
(1)
provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to the State, or by granting to employers generally the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld; and
(2)
imposes the duty or grants the authority to withhold generally with respect to the pay of employees who are residents of the State;
the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the State withholding statute in the case of employees of the agency who are subject to the tax and whose regular place of Federal employment is within the State with which the agreement is made. In the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made”.
(b)
This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on other employers, or which subjects the United States or its employees to a penalty or liability because of this section. An agency of the United States may not accept pay from a State for services performed in withholding State income taxes from the pay of the employees of the agency.
(c)
For the purpose of this section, “State” means a State, territory, possession, or commonwealth of the United States.
(d)
For the purpose of this section and sections 5516 and 5520, the terms “serve as a member of the armed forces” and “service as a member of the Armed Forces” include—
(1)
section 502 of title 32 participation in exercises or the performance of duty under , United States Code, by a member of the National Guard; and
(2)
section 10147 of title 10 participation in scheduled drills or training periods, or service on active duty for training, under , United States Code, by a member of the Ready Reserve.

Pub. L. 89–55480 Stat. 478Pub. L. 94–455, title XII, § 1207(a)(1)90 Stat. 1704Pub. L. 100–180, div. A, title V, § 505(1)101 Stat. 1086Pub. L. 103–337, div. A, title XVI, § 1677(a)(1)108 Stat. 3019Pub. L. 105–34, title XIV, § 1462(a)111 Stat. 1057(, , ; , (b), (c), , , 1705; , , ; , , ; , , .)

Historical and Revision Notes

Derivation

U.S. Code

Revised Statutes and

Statutes at Large

 

5 U.S.C. 84b.

July 17, 1952, ch. 940, § 1, 66 Stat. 765.

 

 

Sept. 23, 1959, Pub. L. 86–371 “Sec. 1”, 73 Stat. 653.

 

5 U.S.C. 84c.

July 17, 1952, ch. 940, § 2, 66 Stat. 766.

 

 

Sept. 23, 1959, Pub. L. 86–371 “Sec. 2”, 73 Stat. 653.

In subsection (b), the words “after ” are omitted as executed.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

Editorial Notes

Amendments

Pub. L. 105–341997—Subsec. (c). substituted “, territory, possession, or commonwealth” for “or territory or possession”.

Pub. L. 103–3371994—Subsec. (d)(2). substituted “section 10147” for “section 270(a)”.

Pub. L. 100–1801987—Subsec. (d). struck out “do not” before “include”.

Pub. L. 94–455, § 1207(a)(1)1976—Subsec. (a). , (c), inserted in par. (1) provision relating to the grant to employers of the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld, inserted in par. (2) “or grants the authority” after “imposes the duty”, and substituted in text following par. (2) provisions that in the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting “who are residents of the State with which the agreement is made” for “whose regular place of Federal employment is within the State with which the agreement is made” for provision that the agreement may not apply to pay for service as a member of the armed forces.

Pub. L. 94–455, § 1207(b)Subsec. (d). , added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 1997 Amendment

Section 1462(b) of Pub. L. 105–34

“The amendment made by subsection (a) [amending this section] shall take effect on .”
provided that:

Effective Date of 1994 Amendment

Pub. L. 103–337section 1691 of Pub. L. 103–337section 10001 of Title 10Amendment by effective , except as otherwise provided, see , set out as an Effective Date note under , Armed Forces.

Effective Date of 1976 Amendment

section 1207(a)(1) of Pub. L. 94–455section 1207(f)(1) of Pub. L. 94–455section 5516 of this titleAmendment by applicable to wages withheld after the 120-day period following any request for an agreement after , see , set out as a note under .

Pub. L. 94–455, title XII, § 1207(f)(2)90 Stat. 1708

“The amendments made by subsections (b) and (c) [amending this section] shall apply to wages withheld after the 120-day period following the date of the enactment of this Act [].”
, , , provided that:

Executive Documents

Executive Order No. 10407

section 5520 of this titleEx. Ord. No. 10407, , 17 F.R. 10132, which related to regulations governing agreements concerning withholding of state or territorial income taxes, was revoked by Ex. Ord. No. 11968, , 42 F.R. 6787, formerly set out as a note under .